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Should Value Investors Buy Delta Air Lines (DAL) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Delta Air Lines (DAL - Free Report) . DAL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.84 right now. For comparison, its industry sports an average P/E of 15.88. Over the past 52 weeks, DAL's Forward P/E has been as high as 9.94 and as low as 5.44, with a median of 6.92.
We should also highlight that DAL has a P/B ratio of 2.75. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.81. Over the past year, DAL's P/B has been as high as 3.11 and as low as 1.94, with a median of 2.59.
Another great Transportation - Airline stock you could consider is LATAM Airlines Group (LTM - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of LATAM Airlines Group are currently trading at a forward earnings multiple of 6.73 and a PEG ratio of 0.48 compared to its industry's P/E and PEG ratios of 15.88 and 0.79, respectively.
LTM's Forward P/E has been as high as 9.31 and as low as 6.73, with a median of 7.99. During the same time period, its PEG ratio has been as high as 0.64, as low as 0.48, with a median of 0.55.
LATAM Airlines Group sports a P/B ratio of 11.16 as well; this compares to its industry's price-to-book ratio of 4.81. In the past 52 weeks, LTM's P/B has been as high as 541.66, as low as 0.23, with a median of 11.
These are just a handful of the figures considered in Delta Air Lines and LATAM Airlines Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DAL and LTM is an impressive value stock right now.
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Should Value Investors Buy Delta Air Lines (DAL) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Delta Air Lines (DAL - Free Report) . DAL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.84 right now. For comparison, its industry sports an average P/E of 15.88. Over the past 52 weeks, DAL's Forward P/E has been as high as 9.94 and as low as 5.44, with a median of 6.92.
We should also highlight that DAL has a P/B ratio of 2.75. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.81. Over the past year, DAL's P/B has been as high as 3.11 and as low as 1.94, with a median of 2.59.
Another great Transportation - Airline stock you could consider is LATAM Airlines Group (LTM - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of LATAM Airlines Group are currently trading at a forward earnings multiple of 6.73 and a PEG ratio of 0.48 compared to its industry's P/E and PEG ratios of 15.88 and 0.79, respectively.
LTM's Forward P/E has been as high as 9.31 and as low as 6.73, with a median of 7.99. During the same time period, its PEG ratio has been as high as 0.64, as low as 0.48, with a median of 0.55.
LATAM Airlines Group sports a P/B ratio of 11.16 as well; this compares to its industry's price-to-book ratio of 4.81. In the past 52 weeks, LTM's P/B has been as high as 541.66, as low as 0.23, with a median of 11.
These are just a handful of the figures considered in Delta Air Lines and LATAM Airlines Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DAL and LTM is an impressive value stock right now.